Extending mandate of tax authorities may halt tax evasion? Handing over the right of prosecution and investigation to the tax authorities is expected to hinder tax evasion as well as delayed tax payments by enterprises, especially multinational firms in Vietnam. A number of these enterprises have been delaying tax payments, while others took advantage of loopholes to evade tax obligations. Notably, in 2011-2015, the tax authorities sent 16,087 cases to intermediary authorities, however, only 395 of these were prosecuted, while the rest were dropped as not enough evidence could be collected. Meanwhile, in 80 countries where tax authorities are permitted to investigate and prosecutre firms, tax evasion is far rarer due to constant monitoring and quick action.

Source: VietNamNet News May 08, 2018 05:03 UTC